WA Income Tax Faces New Economic Warning Ahead of Election + $15 Billion I-5 Bridge Faces Lawsuit

Washington's new 9.9% income tax could cost the state thousands of jobs and billions in economic output, according to warnings from business advocates. Meanwhile, a $13 billion–$15 billion Interstate Bridge Replacement project faces a federal lawsuit, and a Washington Supreme Court candidate is criticizing political attack mailers targeting judicial candidates. In this episode of Washington In Focus Daily, The Center Square examines Washington's income tax repeal debate, small business concerns, the Columbia River bridge lawsuit, government spending and political influence in Washington Supreme Court elections. WASHINGTON INCOME TAX: 18,000 FEWER JOBS? The National Federation of Independent Business (NFIB) is warning about potential economic consequences if Washington's new 9.9% income tax remains in place. Patrick Conner, NFIB's Washington state director, discusses an economic analysis from the Washington Policy Center and Buckeye Institute projecting 18,000 fewer jobs than would otherwise be created, along with reduced business formation and economic output. The analysis projects approximately 1,400 fewer new businesses annually and an annual reduction in economic output reaching $8.3 billion by 2036. These figures are forecasts from opponents of the tax, not documented job losses. Conner argues that Washington's tax on income above $1 million could affect small business owners who report business profits on their personal income tax returns, including owners of partnerships, LLCs and S corporations. NFIB also shares concerns from a Vancouver business owner considering relocating because of Washington's tax environment. Supporters of the income tax argue that repealing it would threaten future funding for education, health care and child care. Conner disputes those claims, noting that tax collections are not expected to begin until 2029. The disagreement comes as Washington voters prepare to decide whether to repeal the income tax in the November election. $15 BILLION INTERSTATE BRIDGE REPLACEMENT FACES LAWSUIT A Columbia River manufacturer has filed a federal lawsuit challenging the proposed Interstate Bridge Replacement design connecting Washington and Oregon. Iron Partners LLC argues that the proposed fixed-span bridge, with 116 feet of vertical clearance, would restrict navigation and harm industrial operations along the Columbia River. The lawsuit challenges the federal environmental review and approval process and seeks to halt advancement of the current design. Washington state Rep. John Ley discusses the controversy, including approximately $141 million in mitigation agreements involving four upriver industrial businesses. Ley also questions the project's estimated $13 billion–$15 billion price tag and the inclusion of light rail connecting Portland and Vancouver. Construction is currently planned to begin in 2028. Whether the lawsuit will delay that timeline remains uncertain. The dispute raises questions about infrastructure costs, federal transportation funding, industrial shipping, environmental review, taxpayer spending and the future of the Interstate Bridge Replacement Program. WASHINGTON SUPREME COURT ELECTION FIGHT INTENSIFIES Washington Supreme Court candidate Dave Larson is speaking out against political attack mailers targeting five candidates in officially nonpartisan judicial races. The mailers come from a political action committee called Beware the Attack on Our Courts, which warns voters about what it describes as an effort by conservative groups to influence Washington's highest court. Larson, who is challenging incumbent Justice Theo Angelis, disputes the PAC's claims and argues that partisan-style political attacks undermine public confidence in judicial independence. The campaign has received funding from public employee organizations, including SEIU 775 and the Washington Education Association. Larson says the attacks could discourage qualified candidates from running for judicial office. The report also includes a response from Sally Poliak of Future 42, who disputes claims that her organization has engaged in electioneering for Larson or other Supreme Court candidates. The Center Square sought responses from the PAC's major funders and the incumbent justice's campaign. Responses had not been received at the time of the report. With five Washington Supreme Court seats on the ballot, the controversy highlights questions about judicial impartiality, political campaign spending, labor union influence and the role of outside organizations in nonpartisan elections. Get important Washington government and policy updates by text about twice a week. Text TCSWA to 206-944-3016 to receive Washington news updates. #WashingtonNews #WashingtonIncomeTax #InterstateBridge #WASupremeCourt #TaxpayerAccountability